Everybody likes Fridays, especially Nonfarm Payrolls Fridays. With increased volatility and significant trading signals, it’s a great feast for traders. Ahead of the NFP, USD is weaker and stocks are heading higher.
Yesterday, the DXY made an attempt to break the mid-term downwards trend line and the horizontal resistance created by the neckline of the H&S formation. Contact with that area resulted in a false breakout and a strong reversal. With that, the sentiment remains negative.
Gold bounced sharply yesterday using the 1300 USD/oz level and a correction equality pattern.
A correction equality pattern was also used on the EURUSD, which climbed higher, also using a 61.8% Fibonacci and the neckline of the iH&S formation. Sentiment is positive.
The positive outlook on the EUR also extends to the EURJPY, where we have an upwards trend with a small flag. This suggests that after the small correction currently taking place, we should continue to climb higher, especially after defending the 130.9 support.